Deals
Concordia Plans Restructuring After Missing Interest Payment
- Drugmaker is using the Canada Business Corporations Act
- Company says move preserves cash, buys time for lender talks
This article is for subscribers only.
Concordia International Corp., stumbling under debt that the Canadian drugmaker piled on during a takeover spree, is seeking to restructure its finances and cut borrowings by at least $2 billion after missing an interest payment Monday on some unsecured bonds.
Management is pursuing a plan under the Canada Business Corporations Act, according to a statement Friday, which didn’t outline any potential terms of a deal but said the company would continue making payments on its secured debt. The CBCA allows companies to restructure out of court, although the plans require final court approval. Negotiations with lenders will continue during the process, the company said.